Surprising trends in AI job postings across Australia

Generative Artificial Intelligence (GenAI) is seeing varied adoption across industries, with some surprising trends identified, according to a new analysis by Callam Pickering, APAC Economist at Indeed.

The analysis indicates a rapid increase in job postings mentioning GenAI over the past year. In Australia, for instance, the number of such postings has tripled over this period, with even faster growth observed internationally. The most significant adoption of GenAI tools is in data analytics, software development, and scientific research sectors. These fields have been identified as having a higher likelihood of GenAI replacing common human skills.

Pickering's analysis suggests that while certain sectors are prominent in GenAI adoption, others, surprisingly, are not aligning with expectations. "The share of job postings mentioning GenAI or related terms has skyrocketed over the past year, up 3 times in Australia and even faster in other countries," Picking remarked.

"Data analytics consistently ranks as the sector with the highest GenAI postings share across all nine analysed countries. Scientific research and software development also rank highly in eight of these countries."

However, there are notable sectors where GenAI mentions are less common than anticipated. The analysis identified areas such as accounting, insurance, and medical information in Australia where GenAI usage remains below initial expectations. Despite the high potential for GenAI to replace job-relevant skills in these fields, uptake has been limited.

The report explains, "We found that sectors where GenAI is most likely to replace certain skills typically have a higher share of job postings mentioning these tools. But there are some surprises: Some sectors with a relatively high share of skills likely to be replaced (including accounting and insurance) have virtually no GenAI-related job postings."

Interestingly, other sectors like scientific research, architecture, and the arts and entertainment are seeing higher-than-expected GenAI integration, suggesting emerging and perhaps specialised uses of these AI tools. In Australia, in particular, architecture and the arts and entertainment reflected this overperformance in adoption, aligning with global patterns.

In terms of sectors less directly related to technology, GenAI usage patterns are inconsistent. Some countries see significant job postings in roles like marketing media and communications, while others do not.

Pickering notes the complexity of predicting GenAI adoption: "Some deviation from expectations is to be expected. Hiring Lab's earlier analysis only tested the capabilities of OpenAI's GPT-4o model, and did not assess any other GenAI tools—some of which are highly specialised in specific skills."

He continued, "And while GenAI may be able to perform a range of skills at a high level, workplace adoption may still lag behind due to a lack of infrastructure or processes to facilitate its usage, along with regulatory limitations or even moral or cultural concerns."

Data analytics remains the most significant sector, with 6.3% of job postings in Australia mentioning GenAI by September 2024. This figure is mid-range internationally, behind countries like Ireland and Spain but ahead of the UK and US.

Across the board, GenAI job postings are predominantly concentrated in a limited number of sectors. This pattern suggests that despite advancements in GenAI technology, its practical application in various industries remains to be more fully realised.

The report concludes that while the rapid rise of GenAI in highly exposed sectors continues as anticipated, its practical usage across broader fields has yet to prove its worth comprehensively. It underscores an ongoing evolution in GenAI adoption, heavily influenced by sector-specific contexts and potential regulatory landscapes.